The listed fiber manufacturer Lenzing AG continues to struggle with the economic climate and writes off almost half a billion euros. According to the company, the annual review of asset valuation in accordance with International Accounting Rules (IFRS) revealed an impairment requirement of up to 480 million euros for 2023.
The reasons for the impairment are on the one hand the persistent uncertainties in the economic climate and on the other hand the persistently increased raw material and energy costs and higher discount rates as a result of the changed interest rate environment, the company announced. Tuesday evening after the stock market closes.
The special depreciation is non-cash and will have no impact on full-year EBITDA for 2023, according to the publication, but will impact EBIT for fiscal year 2023, as Lenzing explained.
Lenzing’s board also specified the previous profit forecast. The company will therefore report an EBITDA of approximately EUR 300 million in 2023. What the annual figures will look like remained unclear. In 2022, Lenzing AG ended in the red – at minus 37.2 million euros.
The savings package should reduce costs by around 100 million euros per year
Through a savings package put together last year, which is called a performance program, the group led by Stephan Sielaff wants to reduce costs by 100 million euros per year in the future. In addition, 500 jobs will be cut worldwide.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
